Tax Hurts India's Commodity Derivatives Trading

Volumes of gold, silver and metal derivatives down by more than a third

By

Debiprasad Nayak

July 9, 2013 5:06 a.m. ET

MUMBAI—India's trading volumes of gold, silver and metal derivatives have fallen by more than a third since the imposition of a commodity transaction tax a week back, exchange data showed on Tuesday.

The finance ministry imposed a 0.01% tax on the trading of all non-agriculture and some agriculture commodity derivatives on July 1 to boost revenues, government officials have said. Stock investors are already paying a similar tax, they...